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New Class of Palestinians Get Rich On Gaza Tunnel Trade

The lucrative trade in contraband through Gaza's tunnel network has produced a new class of wealthy Palestinians, writes Omar Shaban.

Palestinians smoke cigarettes as they work inside a smuggling tunnel dug beneath the Egyptian-Gaza border in Rafah, in the southern Gaza Strip November 26, 2012. Knee-deep in craters carved out by Israeli air strikes, Palestinians wielded shovels and planks to reopen tunnels used to smuggle in goods from Egypt to Gaza, as international aid agencies raced to replenish Gaza's supplies. REUTERS/Mohammed Salem (GAZA - Tags: CONFLICT) - RTR3AWAH
Palestinians smoke cigarettes as they work inside a smuggling tunnel dug beneath the Egyptian-Gaza border in Rafah, in the southern Gaza Strip, Nov. 26, 2012. — REUTERS/Mohammed Salem

One of the challenges for reconciliation between Hamas and the Palestinian Authority (PA) is to reaccommodate 55,000 PA employees — who had been asked to refuse to work with the Hamas government — in the Gaza Strip.  Another important challenge is how to assimilate hundreds of newly rich Palestinians who have amassed vast fortunes from illegal trade as well as legal economic activities, and re-incorporate hundreds who had halted economic activity because of the blockade.

The tunnels are not new

According to the Israeli Ministry of Defense, the tunnels located beneath the Gaza-Sinai border have existed since the mid-eighties. There were only a few, primitive tunnels when they first appeared, used to smuggle contraband such as weapons, drugs and individuals banned from accessing legal crossings.

Tunnels became a central and effective phenomenon since the imposition of the Israeli blockade on Gaza in June 2007 following the Hamas takeover of the Gaza Strip. Their numbers swelled to 1,200, extending beneath a strip of the border 12 kilometers [7.5 miles] long and 700 meters [765 yards] wide. The function of these tunnels has changed as well. They have became a key source for the entry of thousands of vital goods, and an important source of revenue for the Hamas government in Gaza.

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